The EU is half way through with its decisions on the support for European recovery. Unprecedented dilemmas are still under consideration within normally very complex decision making process. One is conditionality. Important for both grants and loans.
In my view this is a moment when proEuropean populism is legitimate. In the context of conditionality, it would mean flexibility. One can call it flexible conditionality or conditional flexibility. Experience of the 2008 crisis tells us that conditionality does not work in crisis. And, for those who do not remember, it led to strengthening antiEuropean populist movements. In principle, beneficiaries of grants should be allowed to decide if their absolute priority is to invest in getting rid of structural deficiencies of their health system or in making urgently their digital education fully inclusive or in supporting local development needs.
But another story is the conditionality based on respect of certain principles. Here we should be very clear. There are European principles already well known to beneficiaries of European single market and European funds. They include governance related areas, like: transparency, anti-corruption measures, fairness, due diligence. Also, more participatory decision making process, in particular regarding citizens and local communities.
It goes without saying that breach of rule of law would be an indecency. And last but not least, reforms and investment supported by European financing should follow strategic goals of the Union contributing to a climate friendly planet and globally competitive digital Europe.
I can also imagine a dynamic conditionality. Over time recovery and resilience supportive transfers could be subject to stronger conditionality.
This time it is simply different. The State has entered and closed companies to save citizens’ life. Across the EU, national fiscal space allowing for rescue and boosting action differs. Also, administrative capacity of governments is hugely diversified. There are few member states where somebody applying for support on Friday, can see it on its balance sheet on Monday.
It might be smart to go for flexible and dynamic conditionality.
Danuta Hübner is a Member of the European Parliament and served as European Commissioner for Regional Policy